Pat’s Blog

“The first and crucial question in defining business purpose and business mission is ‘Who is the customer?’” — Peter Drucker

It’s hard to believe we’re only 60 days out from 2010 but here we are. If you haven’t done so already, right now is the perfect time to put together a plan to succeed in the year ahead. In my experience, the best in our industry plan for their success. Your client base changes every year and it’s important that your sales activities change accordingly. Who did you target this past year? What prospects brought success? What does your target audience look like for 2010? Do your planned sales activities match up with your future goals?

We all know 2010 is going to be tougher than 2009 but with proper planning, a framework for success can be established. So, re-tool, re-evaluate and go to it!

“People are a resource and not just a cost.” — Peter Drucker

Managers everywhere are keeping an eye on various industry forecasts for 2010. While many firms had a successful year due to the refinance market, some of the predictions for 2010 are not for the faint of heart.

Analysts in one report believe that 2010 will be about 60% of the volume produced in 2009. The report also stated that some companies are reinvesting 2009 earnings by putting the capital to work expanding their production facilities by adding branches and agents.

The best investment you can make to prepare for the future is in your sales force. Hiring salespeople who excel at consultative selling skills is a smart strategy that will generate demand and revenue regardless of market conditions.

Important Update:
The MBA has posted presentations from the Annual Convention. Visit http://www.mortgagebankers.org/96thAnnualConventionandExpo.htm and scroll to the bottom of the page to view the presentation for my session, “Shaping the Future Mortgage Sales Force.”

“Crossing the divide into the new realities.” — Peter Drucker

While the recent refinance market has helped many financial companies and producers have a successful current year in production, change is on the horizon. According to an MBA forecast for 2010, the refinance market is receding and the industry is moving toward a traditional business model.

The forecast stated: “MBA expects economic growth to continue through the rest of 2009 before slowing in the first half of 2010… Modest increases in home sales should drive purchase originations but refinance originations are expect to decline as mortgage rates rise.”

Any increase in interest rates will undoubtedly make selling more challenging. Are you prepared to compete in a tougher market?

Traditional markets require better selling skills. Is your sales force up to the task ahead?

Important Update: My latest article, “Raising the Bar: Hiring Integrity Sales Candidates,” will appear in the November issue of Mortgage Banking magazine. If you would like to receive a special preview, email me at psherlock@qfsconsulting.com

“Some of the greatest impediments to effectiveness are the issues of yesterday, which still confine our vision.” — Peter Drucker

In nearly every industry segment, I see companies holding on to a “sales by the numbers” strategy where management believes if enough sales professionals are hired, some of them are bound to produce.

Sales by the numbers is really another way of saying, “This is the way it has always been done” or “This is the way I did it when I was selling 20 years ago.” In reality, this
approach results in massive wasted lead generation, high turnover and low productivity.

In my opinion, a much more effective, efficient sales strategy is to implement a systematic hiring process that enables managers to hire better quality sales professionals. Improved productivity and low turnover are the logical outcomes of this approach.

“No organization can do better than the people it has.” — Peter Drucker

The way I see it, sales managers who want to improve profitability have two choices: reduce costs or increase revenue. While cutting expenses is a great start, you can only go so far with these efforts. The next step is to increase the revenue component.

A company’s ability to generate revenue is directly linked to the quality of its sales force. Better quality salespeople are not dependent on having the lowest price to be able to sell. Top producers also know how to create demand and add value, independent of the company’s efforts.

The key for sales managers is to hire better quality salespeople and then train those individuals to reach their maximum potential.

Upcoming Event: Planning to attend the MBA Annual Conference in San Diego? Don’t miss my session, “Shaping the Future Mortgage Sales Force,” on October 13, 2009, 2:45 p.m.-4:00 p.m. I will be discussing the sales force of the future and the trend toward a smaller, better sales staff. I look forward to seeing you there!